What is the yield to call and why is it important to a bond

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Discussion Questions

Please complete the following queistions with at least 150 words.

1. Describe the difference between a bond issued as a high-yield bond and one that has become a "fallen angel."

2. What is the yield to call and why is it important to a bond investor?

3. Why does a Treasury bond offer a lower yield than a corporate bond with the same time to maturity? Could a corporate bond with a different time to maturity offer a lower yield? Explain.

4. What is the difference in the trading volume between Treasury bonds and corporate bonds? Give examples and/ or evidence.

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Reference no: EM131276065

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